Economy in expenditure instructions GO MS 175


In order to ensure that adequate funds are available for taking up priority developmental programmes of the Government, the following instructions are issued to promote fiscal discipline and an approach of financial prudence in government departments.

i)   Creation of posts would be done based on absolute necessity only. No proposals for up gradation will be entertained.

ii)  All the departments are advised to critically review the necessity of continuing with the permitted numbers under Outsourcing of Staff and see if the purpose can be served by reducing to the minimum number. In any case, no further sanction of Outsourcing of support service shall be proposed by the departments.

iii)   No proposal for abolition of existing revenue or concession which results in reduction of revenues shall be entertained.

iv)   No relaxation of rules which involves additional burden on the Exchequer like payment of medical bills will be permitted.

v)   Proposals for additional allocation of budget under revenue head will not be entertained.

vi)   All proposals for purchase of vehicles shall be deferred / Banned vide orders issued in G.O.Ms.No.170, Finance (W&M) Department, dated 6.7.2005.

vii) All the departments shall examine the necessity of continuing the number of hired vehicles already permitted and to reduce them to the barest minimum. No further hiring of vehicles will be permitted.

viii) Entertaining at Government expenditure should be reduced to the barest minimum. All Departments should observe economy in expenditure in holding conferences/ seminars / meetings. There will be a ban on holding of meetings and conferences at “Five Star Hotels” at State cost.

ix) All Ministers as well as all officials drawing salary of Rs.80,000 (fixed) are permitted to travel by air as per their eligibility. All others who are eligible to travel by air shall travel by economy class only for all domestic travel.

x) The permission for Air Travel should not be given to any officer who is not eligible to travel by air under rules.

xi)  No foreign visits at the cost of State exchequer will be allowed.

xii)  The tours of the Officials in the jurisdiction or outside the jurisdiction shall be limited to the barest minimum and under no circumstances additional provision will be made under Travelling Allowance.

xiii) Incurring of expenditure on any item beyond the powers of the concerned authority will be viewed very seriously and ratification will not be accorded.

xiv)   Purchase of machinery and equipment shall be deferred till a detailed examination has been made and formal Government orders obtained. Strict economy should be followed under office contingencies.

xv)   Ban on transfers of employees shall be strictly implemented as per the orders issued in G.O.Ms.No.119, Finance (DCM.III) Department, dt:17.05.2013. In no case, payment of Transfer Travelling Allowance and Daily Allowance will be allowed.

All the Departments of Secretariat and all Heads of Departments are requested to follow the above instructions scrupulously without any deviation. Any failure on the part of the Departments to implement the above instructions will be viewed seriously by the Government.

The above orders are also applicable to the Panchayat Raj Institutions, all Local Bodies including Municipalities / Municipal Corporations, Public Sector Undertakings, Universities and all grant-in-aid institutions.

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